Charter Capital provides invoice factoring services to businesses to improve their cash flow. They have over 40 years of combined experience in factoring and are based in Houston, Texas with a national reach. The factoring process involves a business submitting invoices to Charter Capital, who then pays the business upfront, usually within 24 hours, and waits for payment from the customer. There are no long-term contracts or minimum fees involved. Brokers can also earn commissions by referring new clients to Charter Capital.
2. •Founded in 2001
•Principals with more than 40 years of combined
experince
•Headquartered in Houston, Texas
•National Reach (clients all over the U.S.)
Who We Are
Charter Capital
www.CharterCapitalUSA.com
3. •Invoice Factoring is a form of commercial finance
whereby a business sells its accounts receivable (in the
form of invoices) at a discount.
•Factoring is not a loan, a form of debt, or a form of
equity.
•Factoring is a funding option for undercapitalized
businesses that wish to improve cash flow.
What is it?
Factoring
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4. How Does It Work?
Factoring
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The business invoices their customer as they
always have.
The business submits the invoices that they
want to factor to Charter Capital. Funds are
wired directly to the business, usually within 24
hours.
Charter Capital waits for the payment from the
customer, and the business continues to grow
free from the worry of cash flow.
Charter Capital
Waits For
Payment From
Customer
Charter Capital
Sends Money to
Business
Business
Invoices
Customer
5. •Trucking Companies
•Staffing Companies
•Service Providers
•Manufacturers
•Security Companies
•Oilfield Service Companies
•IT Consulting Companies
•Outsourcing Firms
•...and more...!!!
What Is A Typical Client?
Clients
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Almost every commercial business (B2B) that has solid
customers and is in need to improve cash flow is a good
candidate for Charter Capital’s invoice factoring services.
6. •A company that sells to other businesses (B2B) on
credit.
•Doing at least $20,000 per month is sales. Our ”sweet
spot” is between $20,000 and $1,500,000 per month in
sales
•Company must have credit worthy customers.
Who Qualifies For Factoring?
Clients
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7. •Q: ”What if my client received a payment for a factored
invoice?”
•A: Tell your client not to cash it. Forward it to us.
•Q: ”How long does it take to get a client set up for
factoring?”
•A: Typically 3-5 business days.
•Q: ”Once set up, how fast do they get their money?”
•A: Typically the same day or the next business day.
Common Questions?
Clients
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8. •Brokers are recorded in our system at the same time
the client is.
•Every time a payment arrives to pay an invoice, the fee
is recorded and commissions are automatically
calculated.
•Commission payments are sent to the brokers by the
fifth of the following month via ACH.
How Do Brokers Get Paid?
Brokers
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9. •Example: Client does $200,000 in sales per month and
we fund all invoices.
•For this example our rate is 2.5% per month for
invoices that are paid during that month.
•Broker’s commision for the first month would be $500.
•$200,000 x 2.5% = $5,000 x 10% = $500
•If a broker can add only one new client each month, by
the end of the year the broker could have $6,000 in
monthly commissions.
So, How Do Brokers Make Money?
Brokers
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10. What Makes Charter Capital Different?
Selling Points
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1 Year Contract Required w/ early exit fee Yes NO
2 Year Contract Required w/ early exit fee Yes NO
3 Year Contract Required w/ early exit fee Yes NO
Monthly Minimum Balance Yes NO
Monthly Minimum Fee Yes NO
Large Application Fee / Deposit Yes NO
Potentially Poor Service Yes NO
Hidden Charges Yes NO
Potentially Annoyed Customers Yes NO
Scrutiny of Owner’s Personal Credit Standing Yes NO
Confusing Reports & Payment Notification Yes NO
Difficult Invoice Submission Process Yes NO
Stringent Financial Reporting Requirements Yes NO
Mandatory Total Invoice Verification Yes NO
Lost Control of Your Collections & Customers Yes NO
Other Factoring
Companies
11. •Charter Capital is comitted to excellent service.
•No ”Hostage Taking”.
•Charter Capital retains clients based upon high levels
of satisfaction.
Why No Term Commitments?
Selling Points
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12. No Hidden Fees
Selling Points
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Hidden Fees vs. Charter Capital
Actual Competitor Fee Schedule
13. Gross Sale = $ 100,000
Raw Materials (COGS) = $ 60,000
Labor (COGS) = $ 10,000
GROSS PROFIT = $ 30,000
10% COD Discount = ($ 6,000)
Cost – Factoring 30 Days = $ 2,500
NET SAVINGS = +$ 3,500
Businesses Can Profit From Factoring
Selling Points
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Example: Manufacturer 10% COD Discount
14. •Complete Simplified Application
•Include: A/R Report
Copy Principal’s Diver License
Sample Invoices
Example Contracts (if applicable)
• Email –or- Fax To Charter Capital
• Terms Sheet to Business – Usually Within 24 Hrs.
The Application Process
Getting Started
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